Karim's current research interest is in developing cognitive models of expert decision making in accounting, auditing and financial markets. His current research focuses on:
- The impact of discretion in accounting rules on earnings management and production / investment decisions of managers. This work seeks to tie amount of discretion in accounting rules, governance structures such as composition of the Board of Directors, operating decisions of managers, and stock market structure (e.g., varying sophistication of investors) into a systemic assessment of the impact of accounting rules on society.
- Understanding the development of common knowledge and how well individuals can assess the technical knowledge and / or predict the preferences of other people. Ability to assess knowledge / preferences of others is important for coordinating behaviour, selecting staff to work on client engagements of varying complexity, determining the intensity of review processes, and determining whom to consult when one needs advice.
- Automated computer experiments focusing on two key issues: (a) Testing the privacy practices of e-commerce websites. E-commerce is a largely unregulated field, so it provides insight about how a market creates disclosure rules and a demand for audit services in the absence of any government or regulatory body. (b) Assessing the functionality of simple heuristic strategies in market environments. Economic models make strong assumptions about the computational ability of human agents. Here we explore how simple individual level strategies (e.g., anchor and adjust) might lead to complex aggregate level behaviour (such as Bayesian behaviour).
Karim has publications in Accounting Review, Accounting, Organizations and Society, Behavioral Research in Accounting, Cognitive Science, Contemporary Accounting Research, Journal of Accounting Research, Journal of Economic Behavior and Organization, and Organizational Behavior and Human Decision Processes.